Description of this paper

Question;(TCO 1) The goal of managerial accounting is to provide;information that managers need for;planning.;control.;decision making.;All of the above;Question 2. Question;(TCO 1) Which of the following statements regarding fixed;costs is true?;When production increases, fixed cost per unit increases.;When production decreases, total fixed costs;decrease.;When production increases, fixed cost per unit;decreases.;When production decreases, total fixed costs;increase.;Question 3. Question;(TCO 1) You own a car and are trying to decide whether or;not to trade it in and buy a new car. Which of the following costs is an;opportunity cost in this situation?;The trip to Cancun that you;will not be able to take if you buy the car;The cost of the car you are trading in;The cost of your books for this term;The cost of your car insurance last year;Question 4. Question;(TCO 1) Shula?s 347 Grill has budgeted the following costs;for a month in which 1,600 steak dinners will be produced and sold: materials;$4,080, hourly labor (variable), $5,200, rent (fixed), $1,700, depreciation;$800, and other fixed costs, $600. Each steak dinner sells for $14.00 each.;Which is the budgeted fixed cost per unit?;$1.06;$1.44;$4.49;$1.94;Question 5. Question;(TCO 1) Which of the following is an example of a;manufacturing overhead cost?;Security at the manufacturing;plant;Fabric used to produce shirts;Cost of shipping product to customers;The salary of the president of the company;4 of 4;Comments;Question 6. Question;(TCO 1) Which of the following is a period cost?;Rent on a factory building;Depreciation on production equipment;Raw materials cost;Commissions paid on each unit sold;Comments;Question 7. Question;(TCO 1) At December 31, 2010, WDT Inc. has a balance in the;Work in Process Inventory account of $62,000. At January 1, 2010, the balance;was $55,000. Current manufacturing costs for the year are $292,000, and cost of;goods sold is $284,000. How much is cost of goods manufactured?;$292,000;$299,000;$277,000;$285,000;Question 8. Question;(TCO 2) BCS Company applies manufacturing overhead based on;direct labor hours. Information concerning manufacturing overhead and labor for;August follows.;Estimated;Actual;Overhead cost $174,000;$171,000;Direct labor hours 5,800;5,900;Direct labor cost $87,000;$89,975;How much overhead should be applied in total during August?;177,000;179,950;171,100;Comments;Question 9. Question;(TCO 2) Citrus Company incurred manufacturing overhead costs;of $300,000. Total overhead applied to jobs was $306,000. What was the amount;of overapplied or underapplied overhead?;$7,000 overapplied;$6,000 overapplied;$6,000 underapplied;$13,000 underapplied;Question 10. Question;(TCO 3) Companies in which of the following industries would;not be likely to use process costing?;Cereals;Paints;Cosmetics;Auto body repairs;Instructor Explanation: See Chapter 5.;0 of 4;Comments;Question 11. Question;(TCO 3) The blending department began the period with 20,000;units. During the period, the department received another 80,000 units from the;prior department, and at the end of the period, 30,000 units remained, which;were 40% complete. How much are equivalent units in the blending department?s;Work In Process Inventory at the end of the period?;12,000;28,000;40,000;52,000;Question 12. Question;(TCO 3) Ranger Glass Company manufactures glass for French;doors. At the start of May, 2,000 units were in process. During May, 11,000;units were completed and 3,000 units were in process at the end of May. These;in-process units were 90% complete with respect to material and 50% complete;with respect to conversion costs. Other information is as follows.;Work in process, May 1;Direct material $36,000;Conversion costs $45,000;Costs incurred during May;Direct material $186,000;Conversion costs $255,000;Calculate the cost per equivalent unit for conversion costs.;$24.00;$4.09;$21.43;$20.40;Question 13. Question;(TCO 4) Total costs were $75,800 when 30,000 units were;produced and $95,800 when 40,000 units were produced. Use the high-low method;to find the estimated total costs for a production level of 32,000 units.;$80,115;$76,000;$79,800;$91,800;4;of 4;Comments;Question 14. Question;(TCO 4) The margin of safety is the difference between;total revenue and total fixed costs.;expected level of sales and the break-even;point.;budgeted fixed costs and actual fixed costs.;selling price and variable cost per unit.;Instructor Explanation: See Chapter 6.;4 of 4;Comments;Question 15. Question;(TCO 4) Allen Company sells homework machines for $100 each.;Variable costs per unit are $75 and total fixed costs are $62,000. Allen is;considering the purchase of new equipment that would increase fixed costs to;$84,000 but decrease the variable costs per unit to $60. At that level, Allen;Company expects to sell 3,000 units next year. Which is Allen?s break-even;point in units if it purchases the new equipment?;2,480 units;36,000 units;2,100 units;3,650 units;Question 16. Question;(TCO 4) Paula Corporation sells a single product at a price;of $275 per unit. Variable cost per unit is $135 and fixed costs total;$356,860. If sales are expected to be $825,000, which is Paula?s margin of;safety?;$468,140;$124,025;$700,975;$405,000;Question 17. Question;(TCO 5) Which of the following is treated differently in;full costing than in variable costing?;Direct materials;Fixed manufacturing overhead;Direct labor;Variable manufacturing overhead;Instructor Explanation: See Chapter 7.;4 of 4;Comments;Question 18. Question;(TCO 5) Variable costing income is a function of;units sold only.;units produced only.;both units sold and units produced.;neither units sold nor units produced.;Instructor Explanation: See Chapter 7.;4 of 4;Comments;Question 19. Question;(TCO 5) Peak Manufacturing produces snow blowers. The;selling price per snow blower is $100. Costs involved in production are as;follows.;Direct material per unit: $20;Direct labor per unit: 12;Variable manufacturing overhead per unit: 10;Fixed manufacturing overhead per year: $148,500;In addition, the company has fixed selling and;administrative costs of $150,000 per year.;During the year, Peak produces 45,000 snow blowers and sells;30,000 snow blowers. How much fixed manufacturing overhead is in ending;inventory under full costing?;$0;$49,500;Question 20. Question;(TCO 6) Which of the following is not a reason why companies;allocate costs?;To calculate the full cost of products for financial reporting purposes;To discourage managers from using external;suppliers;To reduce the frivolous use of company;resources;To provide information needed by managers to;make appropriate decisions;Instructor Explanation: See Chapter 4.;4 of 4;Comments;Question 21. Question;(TCO 5) An allocation base;is the minimum amount to be allocated to a cost object.;coordinates the manufacturing overhead costs;as they are incurred.;will always be less than the variable costs;for a product.;relates the cost pool to the cost objectives.;Instructor Explanation: See Chapter 4.;4 of 4;Comments;Question 22. Question;(TCO 6) The building maintenance department for Jones;Manufacturing Company budgets annual costs of $4,200,000 based on the expected;operating level for the coming year. The costs are allocated to two production;departments. The following data relate to the potential allocation bases.;Production;Dept. 1 Production Dept. 2;Square footage 15,000;45,000;Direct labor hours 25,000;50,000;If Jones assigns costs to departments based on square;footage, how much total costs will be allocated to Production Department 1?;$1,400,000;$1,050,000;$1,575,000;$2,100,000;Question 23. Question;(TCO 7) A company is trying to decide whether to keep or;drop the sporting goods department in its department store. If the segment is;dropped, the manager will be fired. The manager's salary, in relation to the;decision to keep or drop the sporting goods department, is;avoidable and therefore;relevant.;not avoidable and therefore relevant.;sunk and therefore not relevant.;the same for all alternatives and therefore;not relevant.;Instructor Explanation: See Chapter 8.;4 of 4;Comments;Question 24. Question;(TCO 7) BigByte Company has 20 obsolete computers that are;carried in inventory at a cost of $15,000. If these computers are upgraded at a;cost of $8,000, they could be sold for $17,700. Alternatively, the computers;could be sold as is for $8,500. Which is the net advantage or disadvantage of;reworking the computers?;$1,200 advantage;$1,200 disadvantage;$9,200 disadvantage;$9,700 advantage;Question 25. Question;(TCO 7) YXZ Company?s market for the Model 55 has changed;significantly, and YXZ has had to drop the price per unit from $275 to $135.;There are some units in the Work In Process Inventory that have costs of $160;per unit associated with them. YXZ could sell these units in their current;state for $100 each. It will cost YXZ $10 per unit to complete these units so;that they can be sold for $135 each.;When the incremental revenues and expenses are analyzed;which is the financial impact?;$25 per-unit profit if the;units are completed;$125 per-unit profit if the units are;completed;$65 per-unit loss if the units are completed;$150 per-unit loss if the units are completed;Question 26. Question;(TCO 3) Describe a process costing system, including the;types of companies that commonly use this system. How can process costing;information be used in incremental analysis?;Question 27. Question;(TCO 7) Each year, ACE Engines surveys 7,600 former and;prospective customers regarding satisfaction and brand awareness. For the;current year, the company is considering outsourcing the survey to RBG;Associates, who have offered to conduct the survey and summarize results for;$50,000. Robert Ace, the president of ACE Engines, believes that RBG will do a;higher quality job than his company has been doing but is unwilling to spend;more than $12,000 above current costs. The head of bookkeeping for ACE has;prepared the following summary of costs related to the survey in the prior;year.;Mailing;$27,000;Printing (done by Lester Print Shop);$9,000;Salary of Pat Fisher, part-time employee who stuffed;envelopes and summarized data when surveys were returned (130 ? $16);$2,080;Share of depreciation of computer and software used to track;survey responses and summarize results;$1,200;Share of electricity, phone, and so forth based on square;feet of space occupied by Pat Fisher versus entire company;$600;Total;$39,880;Prepare an incremental analysis in good form to determine the;impact on profit of going outside versus conducting the survey as in the past.;Will ACE accept the RBG offer? Why or why not?;Comments;Question 28. Question;(TCO 4) The following monthly data are available for RedEx;which produces only one product that it sells for $84 each. Its unit variable;costs are $28, and its total fixed expenses are $64,960. Sales during April;totaled 1,600 units.;(a) How much is the break-even point in sales dollars for;RedEx?;(b) How many units must RedEx sell in order to earn a profit;of $24,640?;(c) A new employee suggests that RedEx sponsor a company softball;team as a form of advertising. The cost to sponsor the team is $1,792. How many;more units must be sold to cover this cost?

Paper#39463 | Written in 18-Jul-2015

Price : $36

STUDENTS MERIT

CLIENTS’ SUPPORT

MAKE MONEY

CONNECT WITH US

Disclaimer : Studentsmerits.com provides solutions that are custom written and that can only be used for research and reference purposes only. Using this service does not contravene your academic honesty or insititution\'s policies. The following are the ways you are supposed to use our services: (i) As a reference for indepth understanding of the subject. (ii) As a source of ideas / reasoning for your own research (if properly referenced). (iii) For editing and paraphrasing (check your institution\\\'s definition of plagiarism and recommended paraphrase). (iv) Direct citing (if referenced properly).